Fortnox : Interim report Q1

January - March

2023

INTERIM REPORT JANUARY - MARCH 2023

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Interim report

January-March 2023

(Figures in parentheses refer to outcomes in the year-earlier period.)

First quarter of 2023

• Net sales amounted to SEK 370 million (279), up SEK 91 million or 33 percent. Acquisitions accounted for SEK 2 million or 1 percentage point of the increase.
• Operating profit totaled SEK 140 million (90), up SEK 51 million. Adjusted for acquisitions, operating profit amounted to SEK 145 million.

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Operating margin was 38 (32) percent. Adjusted for acquisitions, the operating margin was 39 percent.

Profit after tax was SEK 106 million (67).

Earnings per share before and after dilution amounted to SEK 0.17 (0.11).

Significant events in the first quarter

• As previously announced1), a redistribution of the areas of responsibility of the Group's operating segments took place on January 1, 2023. This was done to provide customers with better service and to achieve a more suitable division of responsibilities between the Group's business areas. The redistribution primarily entails changes in customer and product responsibility, which also affected the breakdown of revenue and operating segment result between the Group's business areas.
• Charlotta Lundberg was appointed as the new head of the Accounting Firms business area and became a member of Fortnox's Executive Management Team in conjunction with the start of her employment at Fortnox on March 6, 2023. Charlotta has several years of experience of senior management positions, including within EF Education. She was also previously a member of the Swedish management team of Hi3G Access AB.
• The Annual General Meeting on March 30, 2023, resolved in accordance with the proposals presented, including the re-election of all Board members, the introduction of the "ESSP 2023" employee stock purchase plan and a dividend of SEK 73 million corresponding to SEK 0.12 per share.

1. Adjusted outcome per segment and quarter for 2022, is available under note 3.1 in the Year-end report 2022 at www.fortnox.se.

Fortnox AB (publ) is a business platform that connects people, businesses and organisations. We help businesses start, grow and develop. With smart technical products, solutions and services, and the ability to connect them with hundreds of external parties, we are a hub for businesses in Sweden. Our vision is to create a prosperous society shaped by thriving businesses. Established in 2001, Fortnox is headquartered in Växjö with offices in Malmö, Linköping and Stockholm. Fortnox AB is listed on Nasdaq Stockholm. For further information see www.fortnox.se

Fortnox AB (publ), Box 472, SE-351 06 Växjö, Sweden | Comp. Reg. No. 556469-6291 | Phone: [phone] | [e-mail]

www.fortnox.se

INTERIM REPORT JANUARY - MARCH 2023

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Good profitability and increased interest in working at Fortnox!

During the quarter, we continued to develop and refine our products, which resulted in several launches. One new addition was offering bookkeeping from bank statements for our customers using Swedbank, meaning that they now have access to automatic bookkeeping. Automatic bookkeeping makes life easier for customers and is a benefit also from a broader Fortnox perspective, since some of our other products, such as Factoring and Insights, become even better the more bookkeeping is automated.

Another addition that makes life easier for customers was the launch of a redesigned VAT flow - a function in Bookkeeping. Reporting VAT takes a lot of work, regardless of whether it is reported monthly, quarterly or annually. It is also important that this is done correctly. Our new flow provides security by starting with a reminder in the form of a "to-do" list, followed by step-by-step instructions that guide customers through the reporting to ensure its accuracy.

We also made it possible to add private individuals in Digital Byrå (a Fortnox product for accounting firms), taking us one step closer to delivering a complete toolbox for accounting firms. We are moving beyond traditional bookkeeping, towards an offering of functions that help accounting firms manage their entire business, of which private individuals and their tax returns are an essential component.

In March, we launched Cling's digital signing tool outside the Marketplaces business area. This gives customers access to an integrated signing tool that makes the process simpler since it allows documents to be sent for digital signing, directly from Fortnox. With a combination of document storage, the newly launched Business Mailbox and signing, we are well on the way to offering our customers comprehensive document management.

Good growth and break-even for Financial Services The work and launches carried out during the quarter will impact our development ahead. The 33 percent increase in sales, to SEK 370 million, compared with the year-earlier quarter is hence a reflection of all the work we did in previous periods. Organic growth amounted to 32 percent, compared with 24 percent in the year-earlier quarter. While all business areas contributed to growth, I would like to highlight

Financial Services. The business area reported a 48 percent increase in revenue, primarily driven by the lending-based operations which grew 51 percent, and it also reached the break-even point during the quarter.

Group operating profit grew 57 percent to SEK 140 million, and we reached an operating margin of 38 percent - the highest level measured for a first quarter. The combined figure of net sales and operating margin, which we refer to as the Rule of Fortnox, amounted to 71 percent. The number of customers reached 495,000, an increase of 15,000, and average revenue per customer and month grew SEK 9 to SEK 242.

More people want to work at Fortnox!

Growing and continuing to invest in the future is a priority, which is why it is so gratifying to see the increasing number of capable and talented people who are interested in working for us. It is important for us to find the right individuals who are suited to our dynamic, innovative culture; this characterizes all parts of our company, including the Executive Management Team. During the quarter, we were hence pleased to welcome a number of new coworkers, including a new Business Area Manager and member of Fortnox's management, who will be part of our efforts to drive our continued journey.

Best regards,

CEO, Tommy Eklund.

Fortnox AB (publ), Box 472, SE-351 06 Växjö, Sweden | Comp. Reg. No. 556469-6291 | Phone: [phone] | [e-mail]

www.fortnox.se

INTERIM REPORT JANUARY - MARCH 2023

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Financial information

SEK million unless otherwise indicated

Key performance indicators (KPIs)	Jan-Mar	Jan-Mar	Change
(Group)	2023	2022
Net sales	370	279	33%
EBIT	140	90	57%
EBIT-margin	38%	32%
Earnings per share, after dilution (SEK)	0.17	0.11	59%
Cash flow from operating activities	141	91	56%
Working capital at the end of the period	333	247	35%
Key performance indicators (KPIs)	Jan-Mar	Jan-Mar	Change
(The Group's operating segments)	2023	2022
Businesses
Revenues	75	54	40%
Operational segment result	58	40	44%
Operational segment margin	77%	75%
Accounting Firms
Revenues	70	54	30%
Operational segment result	43	32	36%
Operational segment margin	62%	59%
Core Products
Revenues	151	115	32%
Operational segment result	89	71	25%
Operational segment margin	59%	62%
Financial Services
Revenues	50	34	48%
Operational segment result
-0	-8
Operational segment margin
-1%	-25%
Marketplaces
Revenues	35	29	21%
Operational segment result
9	5	99%
Operational segment margin
27%	17%
Revenue distribution	Jan-Mar	Jan-Mar	Change
(Group)	2023	2022
Subscription-based	267	203	32%
Transaction-based	81	61	32%
Lending-based	22	15	50%
Others	8	3	140%
Revenue from agreements with customers	378	282	34%

Fortnox AB (publ), Box 472, SE-351 06 Växjö, Sweden | Comp. Reg. No. 556469-6291 | Phone: [phone] | [e-mail]

www.fortnox.se

INTERIM REPORT JANUARY - MARCH 2023

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Group Development

Group - Net sales and results in the first quarter

Net sales amounted to SEK 370 million (279), up SEK 91 million or 33 percent. Acquisitions accounted for SEK 2 million or 1 percentage point of this increase. Revenue increased as a result of higher revenue per existing customer, new customers and products, and the further development of existing products. This contributed to organic growth of 32 percent (24) for the first quarter compared with the year-earlier period.

During the quarter, efforts to develop new and further develop existing products continued, bringing own work capitalized, which consists of internally generated development costs, to SEK 25 million (21).

Operating expenses totaled SEK 238 million (193), up SEK 45 million or 23 percent. This was primarily due to higher costs for personnel and sales as well as depreciation/amortization.

Operating profit totaled SEK 140 million (90), up SEK 51 million or 57 percent. Adjusted for acquisitions, operating profit totaled SEK 145 million.

The operating margin was 38 percent (32). Adjusted for acquisitions, the operating margin was 39 percent. The operating margin increased year on year, mainly due to strong growth and a general decline in the share of costs in relation to sales.

Profit before tax amounted to SEK 140 million (87), up SEK 52 million or 60 percent.

At the end of the period, the number of subscription customers was 495,000 (441,000), up 12 percent.

Annual Recurring Revenue (ARR2)) amounted to SEK 1,103 million (737).

Average Revenue Per Customer (ARPC2)) amounted to SEK 242 (204).

2) For a definition of the alternative performance measures ARR and ARPC, see Fortnox Annual and sustainability report 2022, available at Fortnox.se.

Fortnox AB (publ), Box 472, SE-351 06 Växjö, Sweden | Comp. Reg. No. 556469-6291 | Phone: [phone] | [e-mail]

www.fortnox.se